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The government "freezes" the Contingency Fund, the salary increase bill for senior officials amounts to 80 million euros

Politiko 2023-05-29 10:46:52

The government "freezes" the Contingency Fund, the salary increase

The government will use the Contingency Fund to finance the salary increase of the administration during this year. Although the Department of Public Administration is still preparing the salary increase scenarios according to sectors, preliminary estimates show that the overall bill is expected to be 9 billion ALL or 80 million euros.

In the 2023 budget, the government has programmed ALL 12 billion as a Contingency Fund. Of these, 3.5 billion ALL were used to finance the pensioners' bonus, leaving 8.5 billion ALL still unspent. But apart from the contingency, the government has provided another 2.5 billion lek in the budget as a fund for new salary policies. These two items will finance this year's salary increase for public sector employees.

Ambiguity of numbers

A few days ago, the Parliament of Albania approved the package of new laws for salaries in the state sector. For high-ranking state officials, salaries were significantly increased up to twofold. Earlier, during the past month, the government had approved salary increases for teachers, doctors and some other categories of public service, in the amount of 7 to 10 percent.

Prime Minister Edi Rama has pledged that by next year the average salary in the state will reach 900 euros, which requires an increase of about 40 percent of salaries in the entire spectrum of the public sector. The government has not yet given details on how the wage increase will be phased and has not even made public this year's budget bill and its financing. But sources from DAP and the Ministry of Finance say that for this year the salary increase bill is expected to fluctuate from 9 to 10 billion ALL.

In this year's budget, the government has provided 80 billion lek in total as a salary fund for the public administration. The addition of 9 billion lek means an average salary increase of 11-12 percent in the public sector. But since it starts from April, then this fund determines an increase in salaries in the public sector by an average of 15 percent.

However, even this increase remains far from the government's promise to increase wages by 40 percent by April next year. Which means that the government will have to program an additional 30 billion lek by next year to finance its promise of salary increases.

Taken from Oligarchia.al

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